Thursday, 13 May 2010

Prominent New Zealand activists and unionists are among the 53 public signatories to a letter to prime minister John Key calling for action to curb banking power and protect grassroots people. The full list of public signatories is included below.

The letter, written on behalf of grassroots people in New Zealand, reads:

Dear Mr Key,

Why are you wanting to raise GST? Food and everything else will be more expensive. It's already hard to make ends meet. Why don't you tax the banks and other fat cats that have been ripping us off? We want justice Mr Key, make them pay.

Signed,

Grassroots people of NZ

“The global financial crisis has inflicted a lot of pain on New Zealanders, with job losses and widespread clamps on wages,” says Vaughan Gunson, Bad Banks spokesperson. “And this pain is being compounded by the Big Four Aussie banks looking after their own equity position. They’ve been forcing mortgagee sales and inflicting penalties on homeowners struggling to meet their mortgage payments.”

“We're sending a message to John Key and the government: it's the banks and other financial fats cats who must be made to pay, not grassroots New Zealanders," says Gunson.

With the letter Bad Banks campaigners are proposing three "common sense" measures that would rein in the banks and deliver real benefits to grassroots people. The three measures are:

1. Stop forced mortgagee sales

Regulatory muscle used to stop banks turfing people out of their homes. A government body to oversee the re-negotiation of mortgages based on current market values and ability of the homeowner to pay.

2. Turn Kiwibank into a proper public bank

Offering 3% interest loans to first home buyers, zero-fee banking for people on modest incomes, and low interest loans to local bodies for sustainable eco-projects in the public good.

3. Introduce a Robin Hood Tax (also known as a Financial Transaction Tax)

A small percentage tax on financial transactions would net billions of dollars from banks and global financial speculators. GST could be phased out.

“We’re inviting New Zealanders to sign on to the letter and support these three demands,” says Gunson. "They're doable, if there's the political will."

“In a month’s time we’ll be formally forwarding the letter and the full list of people who’ve signed, plus their comments, to the prime minister,” says Gunson.

“We would like to see a debate in New Zealand about why the government is planning to lift GST to 15% in the Budget on 20 May, while the big banks are being allowed to continue making their mega-profits,” says Gunson. “Bad Banks campaigners are up for the debate – is Mr Key?"

3 comments:

Interesting how notable left/liberal political personalities are here portrayed as 'grassroots people of New Zealand'. As far as I can recall, neither I nor any of my non-politico friends were invited to sign your letter, perhaps we're not 'grassroots' enough.